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Germany’s Poverty Rate Rises to 15.5% as Inflation Erodes Incomes

The Paritätischer Armutsbericht highlights worsening material deprivation and declining effectiveness of social protections for 13 million Germans.

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Overview

  • The 2024 poverty rate in Germany increased to 15.5%, affecting approximately 13 million people, up 1.1 percentage points from the previous year.
  • Inflation has reduced the real median income of those below the poverty line from €981 in 2020 to €921 in 2024, despite nominal income gains.
  • Groups most affected include single parents, young adults, and retirees, with elderly women particularly vulnerable to poverty.
  • Regional disparities persist, with poverty rates ranging from 11.8% in Bayern to 25.9% in Bremen, the highest in the country.
  • The report underscores weakened social protections, as the poverty reduction effect of public transfers dropped from 27.7 percentage points in 2021 to 25.1 points in 2024.